Transcript www.licguru.in

CAREER AS LIC AGENT
Kamlesh Gurbuxani, CFPCM
Development Officer
LIC of India
We groom Ordinary People to
earn Extraordinary Wealth
and make them
STAND OUT FROM THE CROWD
Introduction
• LIC agent is the person who provides advice on
Life Insurance Planning to people to protect
their family from unexpected events of death,
disability and retirement of the bread winner.
It is a noble profession indeed.
• LIC agent also contributes to economic
development of the country. As the money
collected towards life insurance premium goes
towards Nation Building Activities e.g: Roads,
Railways, Ports, Bridges, Water supply,
Electricity, Housing etc.
Job Profile of LIC Agent
The main job of LIC Agent involves:
•Prospecting: Identifying the prospective
customers and fixing appointment.
•Need Analysis: Identifying the needs and
getting the prospect agree that need exists.
(i.e. Family Income Provision, Children
Education and Marriage Provision or
Retirement Income Provision.)
Job Profile of LIC Agent
• Plan Presentation: Suggesting suitable
plans that fulfil the needs as agreed by
the prospect.
• Closing the Sale: Convincing the prospect
that you have suggested the best possible
solution for his needs and ask for the
order.
• After Sales Service: Provide efficient after
sales service and claims settlement.
Attributes You Should Possess
To become Successful LIC Agent:
• You should be outgoing and love to meet
people.
• You should be ambitious to start your own
Business.
• You should have Good Communication
Skills.
• You should have lot of Perseverance.
• You should be willing to work hard with lot
of Dedication and Devotion.
• You should be prepared to accept
rejections as stepping stone.
Benefits of LIC Agency
as a Career
• LIC agency is considered today as the highest
paid profession in the world.
• It also provides you with the Royalty Income.
• You can start your own Business with less Capital
Investment.
• You have freedom to set your own working
hours.
• You have the opportunity to earn as per your
potential.
• Your work gets easier and less demanding as
your business grows.
• You can Pass this Business to your next Generation as a
legacy.
Market Potential
1. Indian Insurance Market:
•
•
•
•
It is one of the least Insured Market in the world.
Out of total insurable population only 40% are
covered till today.
These 40% also are also not adequately covered.
Only 20% of total agency force is working as
Professionals, and these 20% brings 80% of total
life Insurance business.
We will help build your career as a
professional agent and make sure that you will
be among these top 20% agents.
Market Potential
2. Growth Opportunities:
a.
b.
c.
d.
e.
f.
g.
h.
Low Insurance Penetration.
Low Insurance Density.
Low share of world premium.
High per capita Savings.
Increase in working population.
Growth in personal Income.
High Consumer Awareness.
Strong LIC brand.
Market Potential
a. Low Insurance Penetration:
• Insurance penetration is measured by
Premium as a percentage of GDP.
• We will come to know about the potential
when we compare the difference in
penetration level in India with other
countries of the world.
Country
Penetration
(%)
Taiwan
14.50
South Africa
12.70
Hong Kong
11.70
Japan
8.80
United Kingdom
8.80
Finland
8.70
South Korea
7.50
Denmark
6.90
Switzerland
5.30
Singapore
4.40
India
3.10
The penetration level in
India for the year 201314 is about 21% of
Taiwan, 24% of South
Africa and 26% of Hong
Kong.
The above figures show
that there is tremendous
potential available in
India to match the
figures of Asian and
other countries of the
world.
Source: Swiss Re, Sigma 03/2014
Market Potential
b. Low Insurance Density:
•
•
Insurance Density is the ratio of
premium to total Population.
We will come to know about the
potential when we compare the
difference in Insurance Density in India
with that of other countries of the
world.
Country
Density in
USD
Hong Kong
4445
Switzerland
4211
United Kingdom
3474
Japan
3346
Sweden
3215
Taiwan
3204
Singapore
2388
South Korea
1816
USA
1684
China
110
India
41
World Average
366
Insurance Density for
the year 2013-14 in India
is just 11% of the world
average and only 0.92%
of Hong Kong.
There is huge potential
available just to reach
the world average and to
reach the figures of
Asian
and
other
countries the scope is
phenomenal.
Source: Swiss Re, Sigma 03/201
Market Potential
c. Low Volume of Life Insurance Premium:
Rank
Country
Market
Share
1.
USA
27.13%
2.
Japan
11.45%
3.
UK
7.10%
4.
China
5.99%
5.
France
5.49%
6.
Germany
5.33%
7.
Italy
3.63%
8.
South Korea
3.13%
11.
Taiwan
1.96%
15.
India
1.41%
Looking at the very
low volume of life
insurance premium of
India, we can assess
the available potential
of
Indian
Life
Insurance Market.
Source: Swiss Re, Sigma 03/2014
Market Potential
d.High per capita Savings:
• Indian People are good savers. Indian
Gross household saving in financial
sector is 8% of GDP for the year 201112.
• The share of life Insurance premium
was 19.9% of gross house hold savings.
(Source: RBI Annual Report 2012-13).
Market Potential
Report on the savings pattern states that:
83% save for emergencies,
81% for Children’s education,
69% for old age,
63% to meet future expenses towards
marriages, birth and social ceremonies.
The above pattern indicates tremendous
scope for life Insurance products.
Market Potential
e. Increase in working population:
• India has about 40% of young population at
present i.e. age group 20 to 49 years. This is
expected to grow to 65% by the year 2020.
• Research by Morgan Stanley shows that India’s
working-age population will increase by 136
million by 2020. (China’s working-age population,
by comparison, will grow by 23 million.)
The expected increase in young working
population shows the potential available in India
for Life Insurance Business.
Market Potential
f. Growth in personal Income:
•
•
•
•
As per report of National Council of Applied
Economic Research (NCAER) 2009-10,
There are 28.4 million families with incomes
between Rs 2 lakh and Rs 10 lakh per annum.
(This is as per the World Bank definition of
middle class.)
The number of such households was 4.5 million
in 1995-96 and 10.7 million in 2001-02.
These households are expected to grow 4 times
in next 10 years.
The report said that two thirds of the Indian
middle class is to be found in urban India.
Market Potential
g. High Consumer Awareness:
• Splitting of joint families, absence of social
security scheme and opening up of Insurance
sector has contributed to increased awareness
about life Insurance.
• Rigorous advertisement by 23 life Insurance
companies has made people realize about
importance of Life Insurance.
• The total First year Premium of life insurance
industry has increased from 9,707 Crores in the
year 2000-2001 to 1,07,209 Crores in the year
2012-13, showing a compounded annual growth
of 22.16%.
Market Potential
h. Strong LIC Brand:
• You will be associated with one of the leading
Life Insurance Company of the world. The
brand image of LIC of India is huge, people in
India identifies life Insurance as LIC only.
• Brand Value of LIC is ` 18,00,000 Crores, and
you will be using that brand on your card.
Thus selling life Insurance policies for
LIC of India is much easier.
Market Potential
Market Share of LIC of India as on 31/03/2014 is as under:
First Year
Premium
in Crores
Market
Share
Number of
Policies
Market
Share
LIC of India
90,124
75.33%
3,45,11,781
84.44%
All 23 Private Companies
29,517
24.67%
63,61,536
15.56%
Total
1,19,641
4,08,73,317
The above figures shows dominance of LIC of
India even after 14 years of opening of the
Insurance sector to private companies.
Market Potential Summary
•
•
•
•
•
•
•
•
•
The least Insured life Insurance Population,
Paucity of Professional Agents,
Low Insurance Penetration and Density,
Low Volume of Life Insurance Premium,
High rate of personal savings,
Young working population,
Burgeoning Middle and Higher income class,
Rising Insurance awareness and
Strong Brand image of LIC of India
All these positive aspects provide you with
tremendous opportunity to build your career as
a Professional LIC agent.
Remuneration
• The remuneration will be paid to you in the
form of Commission as percentage of premium
collected through the policies sold by you.
• It is not a one time commission on a sale made
by you.
• It provides you the royalty income through out
the term of policy. As long as policyholder pays
the Premium you will get the commission.
• Moreover this commission is hereditary i.e. it
will be paid to your nominees even after your
death.
Remuneration
The Commission rates on regular premium
policies are as under:
• First year Commission
• Bonus Commission
• Renewal Commission:
2nd and 3rd Year of Policy
4th year onwards
: 7.5% to 25%
: 40% of first year
commission.
: 2% to 7.5%
: 2% to 5%
Remuneration
Example of Commission on Endowment type
of policy of Term 15 years and above:
• 1st Year Commission : 25% of Premium.
Bonus Commission : 40% of first year
Commission (i.e. 10% of Premium)
Total 1st Year Commission: 35% of Premium
• Renewal Commission:
2nd & 3rd Year of policy
: 7.5% of Premium
4th Year onwards
: 5% of Premium
Your Expected Income for Next 5 years:
Year
Expected
New
Premium
1st year
1st
12,00,000
4,20,000
2nd
24,00,000
3rd
36,00,000
4th
48,00,000
5th
60,00,000
TOTAL
Monthly
Expected Income
2nd year
3rd year
4th year
5th year
90,000
90,000
60,000
60,000
8,40,000
1,80,000
1,80,000
1,20,000
12,60,000
2,70,000
2,70,000
16,80,000
3,60,000
21,00,000
4,20,000 9,30,000
35,000
77,500
15,30,000 21,90,000
29,10,000
1,27,500 1,82,500
2,42,500
As Years pass by your Renewal Commission keeps on increasing thereby
assuring you a pension for the next 20 to 25 years even when you stop
working OR will be paid to your family in event of your death.
Remuneration
We will make sure through our
meticulous training that your
earnings should be as per the chart
shown,
but that requires willingness on
your part to take lot of physical
pain.
Club Memberships
Club
Membership
is
the
recognition bestowed upon the
agents to increase their status in
the society and in the
Corporation.
Club Memberships
•
•
•
•
•
•
Following are the levels of club membership
depending up on the Business performance:
Distinguished Club Member.
Branch Manager’s Club Member.
Divisional Manager’s Club Member.
Zonal Manager’s Club Member.
Chairman’s Club Member.
Corporate Club Member.
Club Memberships
Following additional benefits are given over
and above the commissions’ payable:
1. Office Allowance to maintain your own office.
2. Telephone/Mobile bill reimbursement.
3. Reimbursement of Sales Promotional Gift
items.
4. Interest free advance for purchase of
Car/Motorbike.
5. Interest free advance for purchase of office
equipment.
6. Interest free advance for Training.
Club Memberships
7.
8.
9.
10.
Interest free Festival Advance.
Housing loan at concessional rate of interest.
Term Insurance and Mediclaim benefits.
Guest house facility throughout India at
concessional rates as applicable to employees.
11. Annual Convention
Club Memberships
The total monetary equivalent
of all above benefits ranges
from `5,500 to `5,85,000,
depending up on level of Club
Membership.
Gratuity
Agents are entitled to get the gratuity at
age 60/65 years after serving for
minimum 15 years.
At present the Maximum Gratuity
amount payable is ` 2,00,000.
International
Recognition from MDRT
• Founded in 1927, the Million Dollar Round Table
(MDRT), The Premier Association of Financial
Professionals, is an international, independent
association of nearly 36,000 of the world's leading
life insurance and financial services professionals
from more than 430 companies in 78 countries.
• MDRT
members
demonstrate
exceptional
professional knowledge, strict ethical conduct and
outstanding client service.
• MDRT membership is recognized internationally as
the standard of sales excellence in the life insurance
and financial services business.
International
Recognition from MDRT
• To qualify for the membership of
MDRT, agents have to earn the
prescribed First Year Commission
excluding the Bonus Commission
OR brings prescribed First Year
Premium during the Calendar year.
International
Recognition from MDRT
There are three levels of Membership with criteria for MDRT 2015:
First Year
Premium
Sr.
No.
Membership
Criteria
First Year
Commission
without
Bonus
1.
MDRT
Basic
` 8,45,300
` 33,81,200
2.
Court of the Table- COT
3 Times
MDRT
` 25,35,900
` 1,01,43,600
3.
Top of the Table -TOT
6 Times
MDRT
` 50,71,800
` 2,02,87,200
International
Recognition from MDRT
Through our training process we
will make sure that you will
qualify for Basic MDRT by the
end of 3rd year of your agency.
First Year Commission of
Top 10 TOT-2014 Qualifiers from LIC
Rank
Name
Branch
First Year
Commission
Excl. Bonus
Commission
1.
Shri V VENKATESWARA RAO
Vishakhapatnam
2,05,09,585
2.
Smt SANGITA MAHESHWARI
Indore
1,77,58,368
3.
Shri BHARAT V PAREKH
Nagpur
1,09,52,152
4.
Shri RAVINDAR JETHANI
Mumbai
1,01,24,090
5.
DR.BALWANT SINGH CHIRANA
Delhi
88,11,908
6.
Shri AUTI DATTATRAY JAYRAM
Mumbai
86,46,357
7.
Shri PULKIT KHANDELWAL
Delhi
70,71,261
8.
Shri BHIMAN DAS
Kolkata
67,92,431
9.
Shri DEEPAK DHABALIA
Mumbai
66,31,879
10.
Smt HEENA HITESH SHAH
Mumbai
66,01,442
Procedure to become
LIC Agent:
• Appear for Aptitude Test.
• Personal Interview.
• Mandatory Classroom/Online Training
for 50 hours.
• Passing of IRDA Examination.
• Issue of License by IRDA.
Procedure to become
LIC Agent:
Fees:
• ` 150 Registration Fees.
• ` 250 Online Training Fees. No Charges for
Classroom training.
• ` 150 IC -33 Study Material.
• ` 350 IRDA Examination Fee.
• ` 125 IRDA License Fee for 3 years.
Total: ` 1025 for Online Training OR
` 775 for Classroom Training.
Procedure to become
LIC Agent:
Other Requirements:
•
•
•
•
Laptop
Software
Smart Phone
Two wheeler/Car
Support from our side
After getting IRDA license you will be trained
by Shri Kamlesh Gurbuxani, Development
officer, popularly known as GURU in LIC of
India.
He is Associate of Insurance Institute of India
and first Development officer in the country
to complete Certified Financial Planner (CFP)
certification.
Training of agents is his main forte. He has
compiled two books namely “PRERANA” and
“DISHA” exclusively for LIC agents.
Support from our side
• You will be trained at our own training
facilities at Corporate Centre, Nirmal
Lifestyle, Mulund (w), equipped with well
stocked library of Books, Audio and Video
CDs on life Insurance and self
development.
• You will be trained on Need Based Selling
techniques.
Support from our side
• Your activities will be monitored
regularly to insure that you achieve your
desired target on time.
• Our training program is designed in such
a way that you will qualify for MDRT
and Chairman Club Membership within
3 years of your agency.
That means your income will be at least
`1,00,000 per month within 3 years time.
This Opportunity
is for Only 10
Select People.
THANK
YOU